revenue growth
22 pct
FY 2026
official guidance
PENGUIN SOLUTIONS, INC.
Last · NASDAQ$67.59-10.61 (-13.57%)close · yahoo · 13h ago
Market cap$3.46B51.2M sh
P/E · TTM26.0fwd 12.9 · eps 2.60
Beta2.86vs S&P 500
Div yield0.00%annual · TTM
52w range
$16.04$89.86
Volume5.8Msession
| Revenue | $1.2B |
|---|---|
| Operating income | $96.1M |
| Net income | $70.1M |
| Free cash flow | $3.9M |
| Operating margin | 8.3% |
| Net margin | 6.0% |
| Return on equity | 10.9% |
| Period | 2026 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
Strong AI-driven growth and raised outlook outweigh near-term margin, working-capital, and CFO-transition risks.
Buy: Penguin delivered a powerful Q3, with revenue up 48% year over year to $479 million, non-GAAP EPS up 79% to $0.84, and AI-driven businesses growing 104% to 74% of sales.
FY26 guidance now implies 22% company-wide revenue growth and $2.60 adjusted EPS, while preliminary FY27 expectations call for roughly 30% growth; the key tension is whether memory pricing and demand remain durable as gross margin fell to 28.1% and operating cash flow turned negative.
Themes
- Ai Infrastructure
- Integrated Memory
- Memory Pricing
- Cxl
- Agentic Ai
- Working Capital
Near term
FY26 Memory revenue is now expected to grow 90%-95%, with backlog and pricing supporting Q4, although management expects less pricing benefit and some gross-margin pressure in Q4.
Advanced Computing AI infrastructure bookings carry a three-to-six-month conversion cycle, providing visibility into the first half of FY27.
Interim CFO Aaron Johnson takes over after Nate Olmstead’s July 8 departure; execution continuity is likely, but the permanent CFO search remains an overhang.
Higher convertible-debt dilution lifts the expected FY26 Q4 diluted share count to approximately 62 million shares.
Longer term
The business is shifting toward non-hyperscale AI infrastructure, enterprise, neocloud, sovereign AI, and data-center memory; non-hyperscale AI infrastructure grew 81% year over year and rose to 58% of Advanced Computing sales from 33%.
MemoryAI, CXL memory products, and ClusterWareAI could expand Penguin’s role from hardware integration toward higher-value software, services, and managed AI-factory operations.
The land-and-expand model is showing early traction: seven of 13 recent AI Infrastructure logos and five of 16 recent Memory logos subsequently expanded their business.
Competitive differentiation is not yet fully proven. The platform relies partly on Dell and NVIDIA ecosystems, and management did not quantify software monetization, recurring revenue, or win rates against larger infrastructure integrators.
Advanced Computing growth must overcome the Penguin Edge wind-down and the transition away from Meta; management’s preliminary FY27 view is only mid-teens growth for the segment.
Red flags
Q3 operating cash flow was negative $75 million, while accounts receivable rose to $704 million and inventory to $498 million as the company funded rapid memory growth.
Gross margin declined 3.6 percentage points year over year to 28.1%; favorable memory pricing helped Q3, but management expects less pricing support and further pressure exiting FY26.
Management did not quantify how much Memory growth came from pricing versus unit demand, nor did it provide evidence that enterprise customers will continue accepting higher memory prices.
FY26 guidance excludes Advanced Computing AI hardware sales to hyperscalers and assumes the high-margin Penguin Edge business essentially ceases by year-end, limiting the quality and comparability of reported growth.
The preliminary FY27 30% growth view is based on customer signals and first-half visibility rather than a formal outlook, leaving meaningful execution and demand risk.
Forward outlook
adjusted eps
2.55–2.65 $per share
FY 2026
official guidance
gross margin
28–29 pct
FY 2026
official guidance
revenue growth
-20–-15 pct
FY 2026
official guidance
revenue growth
90–95 pct
FY 2026
official guidance
revenue growth
-5 pct
FY 2026
official guidance
revenue growth
30 pct
FY 2027
management framework
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
Earnings
Reported · 10:05 PM UTC+2
Period
Sep 2026
EPS
$1.00Beat+29.87%
Est. revenue
—
9:00 PM UTC+1
Period
Nov 2026
Est. EPS
$1.04
Est. revenue
569.2M
Earnings transcripts
- Motley Fool
Penguin Solutions (PENG) Q4 2026 Earnings Call Transcript
PENGUIN SOLUTIONS, INC.
- Issuer webcast
Q4 2021 webcast
PENGUIN SOLUTIONS, INC.
- Issuer webcast
Q3 2021 webcast
PENGUIN SOLUTIONS, INC.
- Issuer webcast
Q2 2021 webcast
PENGUIN SOLUTIONS, INC.
- Issuer webcast
Q1 2021 webcast
PENGUIN SOLUTIONS, INC.
- Issuer webcast
Q2 2024 webcast
PENGUIN SOLUTIONS, INC.
Documents
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